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| 8-K - FORM 8-K - FIRST M&F CORP/MS | a2q2013earningsrelease8k.htm |
Exhibit 99.1
First M&F Corp. Investor Information
CONTACT: John G. Copeland
EVP & Chief Financial Officer
(662) 289-8594
July 19, 2013
FOR IMMEDIATE RELEASE
Solid quarter for First M&F as merger nears
KOSCIUSKO, Miss. - First M&F Corp. (NASDAQ: FMFC) reported today a net profit for the quarter ended June 30, 2013 of $2.205 million. Net income for the quarter applicable to common stock was $1.698 million, or $0.18 basic and $0.17 diluted earnings per share, compared to the first quarter of 2013 earnings applicable to common of $2.101 million, or $.22 basic and diluted earnings per share and earnings of $1.282 million, or $.14 basic and diluted earnings per share for the second quarter of 2012.
Hugh Potts, Jr., Chairman and CEO commented, “Once again, the performance of M&F is on track with our plans and expectations. Credit metrics continue to improve and the margin battle intensifies. Expenses are under control although merger-related expenses are starting to be felt. These are important issues, especially with our upcoming merger with Renasant Bank to be completed in the third quarter. With that merger, combined with recent performance, the M&F team continues to deliver to our shareholders increasing value and quality in their investment.”
Net Interest Income
Reported net interest income was down by 4.54% on lower volumes compared to the second quarter of 2012, with the net interest margin falling to 3.58% on a tax equivalent basis in the second quarter of 2013 as compared to 3.72% in the second quarter of 2012. The net interest margin for the first quarter of 2013 was 3.53% as compared to 3.56% for the fourth quarter of 2012 and 3.73% for the third quarter of 2012. Loan yields fell to 5.21% in the second quarter of 2013 from 5.61% in the second quarter of 2012. Loan yields fell slightly from the first quarter of 2013 to the second quarter as well. Average loans were $.978 billion for the second quarter of 2013 as compared to $.991 billion for the first quarter of 2013 and $1.004 billion during the second quarter of 2012. Loans held for investment fell by $20.6 million in the second quarter of 2013 but grew by $12.2 million in the first quarter.
Deposit costs decreased in the second quarter of 2013 from the first quarter of 2013 and from the second quarter of 2012, in response to the continuing low rate environment. Deposit costs were .54% in the second quarter of 2013 as compared to .78% in the second quarter of 2012. Deposits grew by $13.4 million during the second quarter of 2013 and have grown by $4.9 million since the second quarter of 2012.
Loans held for investment as a percentage of assets were 63.27% at June 30, 2013 as compared to 62.93% at June 30, 2012 and 60.90% at December 31, 2012. Loans fell by 1.59% since the second quarter of 2012 and deposits grew by .36%.
Non-interest Income
Non-interest income, excluding securities transactions and impairment of investments, for the second quarter of 2013 fell by 46.2% compared to the second quarter of 2012, with deposit-related revenue down by 4.36%. Insurance agency commissions were up 3.77% quarter over quarter. The major contributors to the decrease in non-interest income were reduced mortgage income and the prepayment penalty realized upon the early retirement of Federal Home Loan Bank advances offset somewhat by securities gains taken as the investment portfolio was restructured in preparation for the upcoming merger. Mortgage origination and sale volumes were influenced by a fall in refinancing, partly affected by the rise in rates and due to merger-related turnover in the mortgage department. Mortgage income for the quarter was down 65.7% versus the year ago quarter and down 52% compared to the first quarter.
Non-interest Expenses
Non-interest expenses were down overall 12.43% in the second quarter of 2013 as compared to the second quarter of 2012 largely due to volume-related decreases in mortgage expenses supplemented by lower foreclosed property expenses and lower salaries and employee benefits. These reductions were somewhat offset by merger-related expenses of $.458 million, for accounting, legal and information technology charges. Mr. Potts pointed out that, “After tax net merger-related charges represented about $.04 per share in net earnings for the quarter.”
Credit Quality
Annualized net loan charge-offs as a percent of average loans for the second quarter of 2013 were .09% as compared to 1.26% for the same period in 2012. Net charge-offs totaled $.218 million for the quarter versus $3.054 million a year ago and $.503 million in the first quarter of 2013. Non-accrual and 90-day past due loans as a percent of total loans were .64% at the end of the second quarter of 2013 as compared to .79% at the end of the 2012 quarter. The allowance for loan losses as a percentage of loans was 2.01% at June 30, 2013 as compared to 1.56% at June 30, 2012. The provision for loan losses was lower by 39.5% versus the year ago quarter as credit quality continued to improve.
Balance Sheet
Total assets at June 30, 2013 were $1.529 billion as compared to $1.602 billion at the end of 2012 and $1.561 billion at June 30, 2012. Total loans were $.967 billion compared to $.975 billion at the end of 2012 and $.983 billion at June 30, 2012. Deposits were $1.366 billion compared to $1.403 billion at the end of 2012 and $1.361 billion at June 30, 2012. Total capital was $117.278 million, or $10.58 in book value per common share, at June 30, 2013.
In summary Mr. Potts said, “First M&F had a good quarter and we'll be combining with Renasant on a high note. The decision to merge with Renasant, now approved by our shareholders, was driven by a prudent and thorough assessment of shareholder benefits. On our own, we were well on our way to achieving a return to growing value and high performance but shareholder patience, already taxed with the events of recent years, was a major factor in the decision.”
In closing, Mr. Potts concluded, “As the current prices of First M&F and Renasant indicate, M&F shareholder value has largely been restored. Our shareholders can look to their investment in First M&F, and post-merger in Renasant, as an opportunity for even greater value and financial wherewithal. Looking back at M&F's long history, we can rest assured that there has been Divine guidance given to this company for 123 years. May the Lord continue to guide and bless us as we seek Him in humble reliance and trust. Thanks to our shareholders for the fellowship of shared objectives and a common destiny through this 123 year journey.”
About First M&F Corporation
First M&F Corp., the parent of M&F Bank, is committed to proceed with its mission of making the mid-south better through the delivery of excellence in financial services to 26 communities in Mississippi, Alabama, and Tennessee.
Caution Concerning Forward‑Looking Statements
This document includes certain "forward‑looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive, market and regulatory factors. More detailed information about those factors is contained in First M&F Corporation's filings with the Securities and Exchange Commission.
First M&F Corporation | |||||||||
Condensed Consolidated Statements of Condition (Unaudited) | |||||||||
(In thousands, except share data) | |||||||||
June 30 | December 31 | June 30 | |||||||
2013 | 2012 | 2012 | |||||||
Cash and due from banks | $ | 49,568 | $ | 54,811 | $ | 37,147 | |||
Interest bearing bank balances | 133,333 | 94,313 | 20,708 | ||||||
Federal funds sold | 10,000 | 10,000 | 6,750 | ||||||
Securities available for sale (cost of | |||||||||
$277,588, $341,273 and $371,424) | 273,553 | 348,562 | 377,670 | ||||||
Loans held for sale | 2,614 | 21,014 | 22,291 | ||||||
Loans | 967,013 | 975,473 | 982,596 | ||||||
Allowance for loan losses | 19,431 | 17,492 | 15,310 | ||||||
Net loans | 947,582 | 957,981 | 967,286 | ||||||
Bank premises and equipment | 36,438 | 37,264 | 37,529 | ||||||
Accrued interest receivable | 4,777 | 5,683 | 6,060 | ||||||
Other real estate | 22,571 | 25,970 | 31,077 | ||||||
Other intangible assets | 3,946 | 4,159 | 4,373 | ||||||
Other assets | 44,128 | 41,926 | 50,605 | ||||||
Total assets | $ | 1,528,510 | $ | 1,601,683 | $ | 1,561,496 | |||
Non-interest bearing deposits | $ | 304,734 | $ | 276,295 | $ | 236,145 | |||
Interest bearing deposits | 1,061,474 | 1,126,380 | 1,125,193 | ||||||
Total deposits | 1,366,208 | 1,402,675 | 1,361,338 | ||||||
Federal funds and repurchase agreements | 1,994 | 3,720 | 3,224 | ||||||
Other borrowings | 2,792 | 36,007 | 40,333 | ||||||
Junior subordinated debt | 30,928 | 30,928 | 30,928 | ||||||
Accrued interest payable | 482 | 661 | 844 | ||||||
Other liabilities | 8,828 | 9,249 | 10,912 | ||||||
Total liabilities | 1,411,232 | 1,483,240 | 1,447,579 | ||||||
Preferred stock, 30,000 shares issued and outstanding | 19,569 | 18,865 | 18,198 | ||||||
Common stock, 9,236,479, 9,230,799 and 9,172,098 | |||||||||
shares issued & outstanding | 46,182 | 46,154 | 45,860 | ||||||
Additional paid-in capital | 32,515 | 32,469 | 31,890 | ||||||
Nonvested restricted stock awards | 405 | 244 | 836 | ||||||
Retained earnings | 22,859 | 19,180 | 16,699 | ||||||
Accumulated other comprehensive income (loss) | (4,252 | ) | 1,531 | 434 | |||||
Total equity | 117,278 | 118,443 | 113,917 | ||||||
Total liabilities & equity | $ | 1,528,510 | $ | 1,601,683 | $ | 1,561,496 | |||
First M&F Corporation and Subsidiary | ||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||
(In thousands, except share data) | ||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Interest and fees on loans | $ | 12,652 | $ | 13,741 | $ | 25,350 | $ | 27,899 | ||||
Interest on loans held for sale | 25 | 244 | 81 | 417 | ||||||||
Taxable investments | 1,338 | 1,563 | 2,569 | 3,053 | ||||||||
Tax exempt investments | 348 | 319 | 700 | 637 | ||||||||
Federal funds sold | 6 | 11 | 12 | 26 | ||||||||
Interest bearing bank balances | 40 | 28 | 98 | 79 | ||||||||
Total interest income | 14,409 | 15,906 | 28,810 | 32,111 | ||||||||
Interest on deposits | 1,452 | 2,233 | 2,968 | 4,746 | ||||||||
Interest on fed funds and repurchase agreements | 2 | 5 | 6 | 11 | ||||||||
Interest on other borrowings | 329 | 437 | 700 | 888 | ||||||||
Interest on subordinated debt | 297 | 315 | 580 | 586 | ||||||||
Total interest expense | 2,080 | 2,990 | 4,254 | 6,231 | ||||||||
Net interest income | 12,329 | 12,916 | 24,556 | 25,880 | ||||||||
Provision for possible loan losses | 1,380 | 2,280 | 2,660 | 4,560 | ||||||||
Net interest income after loan loss | 10,949 | 10,636 | 21,896 | 21,320 | ||||||||
Service charges on deposits | 2,437 | 2,548 | 4,808 | 5,005 | ||||||||
Mortgage banking income | 619 | 1,806 | 1,910 | 2,373 | ||||||||
Agency commission income | 880 | 848 | 1,700 | 1,677 | ||||||||
Fiduciary and brokerage income | 203 | 163 | 363 | 303 | ||||||||
Other income | 618 | 673 | 1,662 | 1,510 | ||||||||
Loss on extinguishment of debt | (1,511 | ) | — | (1,511 | ) | — | ||||||
Other-than-temporary impairment on securities, net of | ||||||||||||
$0, $4, $0 and $4 reclassified to other | ||||||||||||
comprehensive income | — | (4 | ) | — | (4 | ) | ||||||
Gains on AFS securities | 1,378 | 1 | 1,394 | 592 | ||||||||
Total noninterest income | 4,624 | 6,035 | 10,326 | 11,456 | ||||||||
Salaries and employee benefits | 6,377 | 6,737 | 12,739 | 13,600 | ||||||||
Net occupancy expense | 819 | 932 | 1,684 | 1,840 | ||||||||
Equipment expenses | 390 | 423 | 822 | 886 | ||||||||
Software and processing expenses | 555 | 346 | 911 | 708 | ||||||||
FDIC insurance assessments | 323 | 553 | 671 | 1,067 | ||||||||
Foreclosed property expenses | 926 | 1,282 | 1,514 | 2,738 | ||||||||
Intangible asset amortization and impairment | 107 | 106 | 213 | 213 | ||||||||
Other expenses | 3,042 | 3,940 | 6,924 | 7,253 | ||||||||
Total noninterest expense | 12,539 | 14,319 | 25,478 | 28,305 | ||||||||
Net income before taxes | 3,034 | 2,352 | 6,744 | 4,471 | ||||||||
Income tax expense | 829 | 599 | 1,941 | 1,111 | ||||||||
Net income | $ | 2,205 | $ | 1,753 | $ | 4,803 | $ | 3,360 | ||||
Earnings Per Common Share Calculations: | ||||||||||||
Net income | $ | 2,205 | $ | 1,753 | $ | 4,803 | $ | 3,360 | ||||
Dividends and accretion on preferred stock | (507 | ) | (471 | ) | (1,004 | ) | (934 | ) | ||||
Net income applicable to common stock | 1,698 | 1,282 | 3,799 | 2,426 | ||||||||
Earnings attributable to participating securities | 65 | 56 | 146 | 61 | ||||||||
Net income allocated to common shareholders | $ | 1,633 | $ | 1,226 | $ | 3,653 | $ | 2,365 | ||||
Weighted average shares (basic) | 9,234,452 | 9,164,576 | 9,232,963 | 9,160,526 | ||||||||
Weighted average shares (diluted) | 9,445,769 | 9,164,576 | 9,403,561 | 9,160,526 | ||||||||
Basic earnings per share | $ | 0.18 | $ | 0.14 | $ | 0.40 | $ | 0.26 | ||||
Diluted earnings per share | $ | 0.17 | $ | 0.14 | $ | 0.39 | $ | 0.26 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
YTD Ended | YTD Ended | YTD Ended | YTD Ended | |||||||||
June 30 | December 31 | June 30 | December 31 | |||||||||
2013 | 2012 | 2012 | 2011 | |||||||||
Performance Ratios: | ||||||||||||
Return on assets (annualized) | 0.62 | % | 0.44 | % | 0.42 | % | 0.27 | % | ||||
Return on equity (annualized) (a) | 8.05 | % | 6.12 | % | 6.06 | % | 4.00 | % | ||||
Return on common equity (annualized) (a) | 7.58 | % | 5.30 | % | 5.21 | % | 2.81 | % | ||||
Efficiency ratio (c) | 72.09 | % | 74.98 | % | 74.94 | % | 78.47 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.55 | % | 3.67 | % | 3.69 | % | 3.68 | % | ||||
Net charge-offs to average loans (annualized) | 0.15 | % | 0.61 | % | 0.86 | % | 1.05 | % | ||||
Nonaccrual loans to total loans | 0.62 | % | 0.75 | % | 0.64 | % | 1.68 | % | ||||
90 day accruing loans to total loans | 0.02 | % | 0.03 | % | 0.15 | % | 0.06 | % | ||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
June 30 | March 31 | December 31 | September 30 | |||||||||
2013 | 2013 | 2012 | 2012 | |||||||||
Per Common Share (diluted): | ||||||||||||
Net income | $ | 0.17 | $ | 0.22 | $ | 0.14 | $ | 0.14 | ||||
Cash dividends paid | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||
Book value | 10.58 | 11.00 | 10.79 | 10.69 | ||||||||
Closing stock price | 15.81 | 14.15 | 6.98 | 7.42 | ||||||||
Loan Portfolio Composition: (in thousands) | ||||||||||||
Commercial, financial and agricultural | $ | 145,411 | $ | 150,125 | $ | 153,550 | $ | 155,890 | ||||
Non-residential real estate | 540,694 | 557,453 | 542,859 | 554,475 | ||||||||
Residential real estate | 206,490 | 203,260 | 200,992 | 197,629 | ||||||||
Home equity loans | 38,340 | 39,047 | 37,736 | 37,196 | ||||||||
Consumer loans | 36,078 | 37,772 | 40,336 | 42,137 | ||||||||
Total loans | $ | 967,013 | $ | 987,657 | $ | 975,473 | $ | 987,327 | ||||
Deposit Composition: (in thousands) | ||||||||||||
Noninterest-bearing deposits | $ | 304,734 | $ | 252,453 | $ | 276,295 | $ | 233,684 | ||||
NOW deposits | 404,457 | 419,376 | 423,461 | 386,371 | ||||||||
MMDA deposits | 200,839 | 207,931 | 214,091 | 216,620 | ||||||||
Savings deposits | 119,583 | 119,728 | 118,123 | 117,404 | ||||||||
Core certificates of deposit under $100,000 | 176,722 | 182,245 | 188,733 | 201,361 | ||||||||
Core certificates of deposit $100,000 and over | 148,734 | 159,913 | 165,979 | 177,084 | ||||||||
Brokered certificates of deposit under $100,000 | 3,305 | 3,295 | 3,549 | 3,417 | ||||||||
Brokered certificates of deposit $100,000 and over | 7,834 | 7,834 | 12,444 | 13,533 | ||||||||
Total deposits | $ | 1,366,208 | $ | 1,352,775 | $ | 1,402,675 | $ | 1,349,474 | ||||
Nonperforming Assets: (in thousands) | ||||||||||||
Nonaccrual loans | $ | 6,036 | $ | 7,277 | $ | 7,444 | $ | 6,219 | ||||
Other real estate | 22,571 | 24,820 | 25,970 | 28,002 | ||||||||
Investment securities | 679 | 604 | 733 | 644 | ||||||||
Total nonperforming assets | $ | 29,286 | $ | 32,701 | $ | 34,147 | $ | 34,865 | ||||
Accruing loans past due 90 days or more | $ | 186 | $ | 268 | $ | 321 | $ | 408 | ||||
Restructured loans (accruing) | $ | 6,209 | $ | 21,657 | $ | 21,800 | $ | 16,784 | ||||
Total nonaccrual loan to loans | 0.62 | % | 0.72 | % | 0.75 | % | 0.62 | % | ||||
Total nonperforming credit assets to loans and ORE | 2.88 | % | 3.12 | % | 3.27 | % | 3.29 | % | ||||
Total nonperforming assets to assets ratio | 1.92 | % | 2.11 | % | 2.13 | % | 2.24 | % | ||||
Allowance For Loan Loss Activity: (in thousands) | ||||||||||||
Beginning balance | $ | 18,269 | $ | 17,492 | $ | 16,656 | $ | 15,310 | ||||
Provision for loan loss | 1,380 | 1,280 | 1,980 | 1,980 | ||||||||
Charge-offs | (569 | ) | (747 | ) | (1,584 | ) | (1,035 | ) | ||||
Recoveries | 351 | 244 | 440 | 401 | ||||||||
Ending balance | $ | 19,431 | $ | 18,269 | $ | 17,492 | $ | 16,656 | ||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
QTD Ended | QTD Ended | QTD Ended | QTD Ended | |||||||||
June 30 | March 31 | December 31 | September 30 | |||||||||
2013 | 2013 | 2012 | 2012 | |||||||||
Condensed Income Statements: (in thousands) | ||||||||||||
Interest income | $ | 14,409 | $ | 14,401 | $ | 15,186 | $ | 15,625 | ||||
Interest expense | 2,080 | 2,174 | 2,545 | 2,753 | ||||||||
Net interest income | 12,329 | 12,227 | 12,641 | 12,872 | ||||||||
Provision for loan losses | 1,380 | 1,280 | 1,980 | 1,980 | ||||||||
Noninterest revenues | 4,624 | 5,702 | 5,735 | 5,607 | ||||||||
Noninterest expenses | 12,539 | 12,939 | 13,913 | 14,060 | ||||||||
Net income before taxes | 3,034 | 3,710 | 2,483 | 2,439 | ||||||||
Income tax expense | 829 | 1,112 | 652 | 645 | ||||||||
Net income | $ | 2,205 | $ | 2,598 | $ | 1,831 | $ | 1,794 | ||||
Preferred dividends | (507 | ) | (497 | ) | (488 | ) | (479 | ) | ||||
Net income applicable to common stock | 1,698 | 2,101 | 1,343 | 1,315 | ||||||||
Earnings attributable to participating securities | 65 | 81 | 53 | 51 | ||||||||
Net income allocated to common shareholders | $ | 1,633 | $ | 2,020 | $ | 1,290 | $ | 1,264 | ||||
Tax-equivalent net interest income | $ | 12,557 | $ | 12,458 | $ | 12,859 | $ | 13,088 | ||||
Selected Average Balances: (in thousands) | ||||||||||||
Assets | $ | 1,543,020 | $ | 1,570,994 | $ | 1,585,467 | $ | 1,546,416 | ||||
Loans held for investment | 973,160 | 977,198 | 982,894 | 984,282 | ||||||||
Earning assets | 1,408,023 | 1,431,054 | 1,436,348 | 1,396,824 | ||||||||
Deposits | 1,345,703 | 1,369,784 | 1,381,667 | 1,343,559 | ||||||||
Equity | 121,328 | 119,209 | 117,529 | 115,544 | ||||||||
Common equity | 101,940 | 100,171 | 98,837 | 97,186 | ||||||||
Selected Ratios: | ||||||||||||
Return on average assets (annualized) | 0.57 | % | 0.67 | % | 0.46 | % | 0.46 | % | ||||
Return on average equity (annualized) (a) | 7.29 | % | 8.84 | % | 6.19 | % | 6.18 | % | ||||
Return on average common equity (annualized) (a) | 6.68 | % | 8.51 | % | 5.40 | % | 5.38 | % | ||||
Average equity to average assets | 7.86 | % | 7.59 | % | 7.41 | % | 7.47 | % | ||||
Tangible equity to tangible assets (b) | 7.43 | % | 7.55 | % | 7.15 | % | 7.28 | % | ||||
Tangible common equity to tangible assets (b) | 6.15 | % | 6.31 | % | 5.97 | % | 6.08 | % | ||||
Net interest margin (annualized, tax-equivalent) | 3.58 | % | 3.53 | % | 3.56 | % | 3.73 | % | ||||
Efficiency ratio (c) | 72.99 | % | 71.25 | % | 74.83 | % | 75.21 | % | ||||
Net charge-offs to average loans (annualized) | 0.09 | % | 0.21 | % | 0.46 | % | 0.26 | % | ||||
Nonaccrual loans to total loans | 0.62 | % | 0.72 | % | 0.75 | % | 0.62 | % | ||||
90 day accruing loans to total loans | 0.02 | % | 0.03 | % | 0.03 | % | 0.04 | % | ||||
Price to book | 1.49x | 1.29x | 0.65x | 0.69x | ||||||||
Price to earnings | 23.25x | 16.08x | 12.46x | 13.25x | ||||||||
First M&F Corporation | ||||||||||||
Financial Highlights | ||||||||||||
Historical Earnings Trends: | Earnings | Earnings | ||||||||||
Applicable to | Allocated to | |||||||||||
Common | Common | |||||||||||
Earnings | Stock | Shareholders | EPS | |||||||||
(in thousands) | (in thousands) | (in thousands) | (diluted) | |||||||||
2Q 2013 | $ | 2,205 | $ | 1,698 | $ | 1,633 | $ | 0.17 | ||||
1Q 2013 | 2,598 | 2,101 | 2,020 | 0.22 | ||||||||
4Q 2012 | 1,831 | 1,343 | 1,290 | 0.14 | ||||||||
3Q 2012 | 1,794 | 1,315 | 1,264 | 0.14 | ||||||||
2Q 2012 | 1,753 | 1,282 | 1,226 | 0.14 | ||||||||
1Q 2012 | 1,607 | 1,144 | 1,139 | 0.12 | ||||||||
4Q 2011 | 987 | 533 | 530 | 0.05 | ||||||||
3Q 2011 | 1,330 | 882 | 878 | 0.10 | ||||||||
2Q 2011 | 1,106 | 666 | 661 | 0.07 | ||||||||
Revenue Statistics: | Non-interest | Non-interest | ||||||||||
Revenues | Revenues to | Revenues to | ||||||||||
Per FTE | Total Revenues | Average Assets | ||||||||||
(thousands) | (percent) | (percent) | ||||||||||
2Q 2013 | $ | 40.3 | 26.91 | % | 1.20 | % | ||||||
1Q 2013 | 40.4 | 31.40 | % | 1.47 | % | |||||||
4Q 2012 | 40.2 | 30.85 | % | 1.44 | % | |||||||
3Q 2012 | 39.9 | 29.99 | % | 1.44 | % | |||||||
2Q 2012 | 41.1 | 31.48 | % | 1.54 | % | |||||||
1Q 2012 | 40.5 | 29.14 | % | 1.36 | % | |||||||
4Q 2011 | 39.0 | 31.48 | % | 1.50 | % | |||||||
3Q 2011 | 36.6 | 27.96 | % | 1.30 | % | |||||||
2Q 2011 | 36.6 | 25.88 | % | 1.18 | % | |||||||
Expense Statistics: | Non-interest | |||||||||||
Expense to | Efficiency | |||||||||||
Average Assets | Ratio | |||||||||||
(percent) | (percent) (c) | |||||||||||
2Q 2013 | 3.26 | % | 72.99 | % | ||||||||
1Q 2013 | 3.34 | % | 71.25 | % | ||||||||
4Q 2012 | 3.49 | % | 74.83 | % | ||||||||
3Q 2012 | 3.62 | % | 75.21 | % | ||||||||
2Q 2012 | 3.65 | % | 74.70 | % | ||||||||
1Q 2012 | 3.50 | % | 75.18 | % | ||||||||
4Q 2011 | 3.82 | % | 80.29 | % | ||||||||
3Q 2011 | 3.52 | % | 75.76 | % | ||||||||
2Q 2011 | 3.59 | % | 78.56 | % | ||||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | QTD June 2013 | QTD June 2012 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 61,978 | 0.26 | % | $ | 30,923 | 0.37 | % | ||
Federal funds sold | 10,000 | 0.25 | % | 15,082 | 0.27 | % | ||||
Taxable investments (amortized cost) | 313,887 | 1.71 | % | 333,794 | 1.88 | % | ||||
Tax-exempt investments (amortized cost) | 44,109 | 5.04 | % | 36,610 | 5.59 | % | ||||
Loans held for sale | 4,889 | 2.08 | % | 30,416 | 3.22 | % | ||||
Loans held for investment | 973,160 | 5.22 | % | 973,545 | 5.69 | % | ||||
Total earning assets | 1,408,023 | 4.17 | % | 1,420,370 | 4.57 | % | ||||
Non-earning assets | 134,997 | 157,050 | ||||||||
Total average assets | $ | 1,543,020 | $ | 1,577,420 | ||||||
NOW | $ | 411,929 | 0.23 | % | $ | 404,958 | 0.43 | % | ||
MMDA | 200,444 | 0.18 | % | 217,533 | 0.37 | % | ||||
Savings | 120,227 | 0.76 | % | 121,778 | 0.95 | % | ||||
Certificates of Deposit | 345,147 | 1.04 | % | 402,703 | 1.31 | % | ||||
Short-term borrowings | 2,862 | 0.20 | % | 2,974 | 0.62 | % | ||||
Other borrowings | 62,062 | 4.05 | % | 71,771 | 4.21 | % | ||||
Total interest bearing liabilities | 1,142,671 | 0.73 | % | 1,221,717 | 0.98 | % | ||||
Non-interest bearing deposits | 267,956 | 232,744 | ||||||||
Non-interest bearing liabilities | 11,065 | 10,493 | ||||||||
Preferred equity | 19,388 | 18,036 | ||||||||
Common equity | 101,940 | 94,430 | ||||||||
Total average liabilities and equity | $ | 1,543,020 | $ | 1,577,420 | ||||||
Net interest spread | 3.44 | % | 3.59 | % | ||||||
Effect of non-interest bearing deposits | 0.14 | % | 0.16 | % | ||||||
Effect of leverage | 0.00 | % | (0.03 | )% | ||||||
Net interest margin, tax-equivalent | 3.58 | % | 3.72 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.06 | % | 0.05 | % | ||||||
Loans | 0.01 | % | 0.01 | % | ||||||
Reported book net interest margin | 3.51 | % | 3.66 | % | ||||||
First M&F Corporation | ||||||||||
Average Balance Sheets/Yields and Costs (tax-equivalent) | ||||||||||
(In thousands with yields and costs annualized) | YTD June 2013 | YTD June 2012 | ||||||||
Average | Average | |||||||||
Balance | Yield/Cost | Balance | Yield/Cost | |||||||
Interest bearing bank balances | $ | 69,212 | 0.29 | % | $ | 55,067 | 0.29 | % | ||
Federal funds sold | 10,000 | 0.25 | % | 20,041 | 0.26 | % | ||||
Taxable investments (amortized cost) | 311,642 | 1.66 | % | 316,708 | 1.94 | % | ||||
Tax-exempt investments (amortized cost) | 44,148 | 5.10 | % | 35,790 | 5.71 | % | ||||
Loans held for sale | 9,305 | 1.76 | % | 26,573 | 3.15 | % | ||||
Loans held for investment | 975,168 | 5.25 | % | 978,672 | 5.74 | % | ||||
Total earning assets | 1,419,475 | 4.16 | % | 1,432,851 | 4.57 | % | ||||
Non-earning assets | 137,455 | 159,365 | ||||||||
Total average assets | $ | 1,556,930 | $ | 1,592,216 | ||||||
NOW | $ | 417,417 | 0.23 | % | $ | 412,108 | 0.45 | % | ||
MMDA | 206,242 | 0.18 | % | 222,067 | 0.45 | % | ||||
Savings | 119,477 | 0.78 | % | 121,307 | 0.97 | % | ||||
Certificates of Deposit | 353,048 | 1.06 | % | 409,895 | 1.35 | % | ||||
Short-term borrowings | 4,093 | 0.27 | % | 4,014 | 0.53 | % | ||||
Other borrowings | 64,107 | 4.03 | % | 72,439 | 4.09 | % | ||||
Total interest bearing liabilities | 1,164,384 | 0.74 | % | 1,241,830 | 1.01 | % | ||||
Non-interest bearing deposits | 261,493 | 229,177 | ||||||||
Non-interest bearing liabilities | 10,779 | 9,603 | ||||||||
Preferred equity | 19,214 | 17,878 | ||||||||
Common equity | 101,060 | 93,728 | ||||||||
Total average liabilities and equity | $ | 1,556,930 | $ | 1,592,216 | ||||||
Net interest spread | 3.42 | % | 3.56 | % | ||||||
Effect of non-interest bearing deposits | 0.14 | % | 0.16 | % | ||||||
Effect of leverage | (0.01 | )% | (0.03 | )% | ||||||
Net interest margin, tax-equivalent | 3.55 | % | 3.69 | % | ||||||
Less tax equivalent adjustment: | ||||||||||
Investments | 0.06 | % | 0.05 | % | ||||||
Loans | 0.01 | % | 0.01 | % | ||||||
Reported book net interest margin | 3.49 | % | 3.63 | % | ||||||
First M&F Corporation | ||||
Notes to Financial Schedules | ||||
(a) Return on equity is calculated as: (Net income attributable to First M&F Corp) divided by (Total equity) | ||||
Return on common equity is calculated as: (Net income attributable to First M&F Corp minus preferred dividends) divided by (Total First M&F Corp equity minus preferred stock) | ||||
(b) Tangible equity to tangible assets is calculated as: (Total equity minus goodwill and other intangible assets) divided by | ||||
(Total assets minus goodwill and other intangible assets) | ||||
Tangible common equity to tangible assets is calculated as: (Total First M&F Corp equity minus preferred stock minus | ||||
goodwill and other intangible assets) divided by (Total assets minus goodwill and other intangible assets) | ||||
(c) Efficiency ratio is calculated as: (Noninterest expense) divided by (Tax-equivalent net interest income plus | ||||
noninterest revenues) | ||||